Free Tools / Money & Business
Profit Margin Calculator
Margin and markup sound similar, but confusing them quietly costs businesses real money: a 50% markup is only a 33% margin. This free profit margin calculator gives you instant clarity on both. Enter your cost per unit and selling price to see your profit in dollars, your margin percentage, and your markup percentage side by side. It flags it immediately if you’re selling at a loss. Whether you price products or services, knowing these numbers is the difference between feeling profitable and actually being profitable.
Include all-in costs: materials, shipping, fees, and your time.
Your numbers
Frequently asked questions
Margin vs markup — what’s the difference?
Margin is profit as a percentage of the selling price (profit ÷ price); markup is profit as a percentage of cost (profit ÷ cost). A $40 cost sold for $70 gives a 75% markup but only a 42.9% margin. Use margin when talking profitability, markup when setting prices from cost.
What is a healthy profit margin?
It varies by industry: retail often runs 20–40%, software/SaaS 70–90%, restaurants 3–10%. For most small product businesses, aim for at least 30–40% margin after all costs so you have room for marketing, returns, and growth.
How do I increase my margin?
Three levers: raise prices (test 10% — most customers won’t notice), cut costs (negotiate suppliers, reduce waste), or change the mix (push high-margin products). Raising prices is usually the fastest and most powerful move.
Does this work for services too?
Yes. Treat your cost per unit as everything the job costs you — your hours at your target rate, subcontractors, software, travel — and the selling price as what you charge. The same margin math reveals whether a service line is actually profitable.
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